...., Microeconomics

Assignment Help:
Homework 4 Q1. Suppose a consumer has utility function (u) = xy where x and y are amounts of two commodities that this consumer consume. Suppose this consumer’s income is $120, price of good x is $1/ unit and the price of good y is $4/ unit. (80 pts) 1.1) Maximize utility for this consumer. 1.2) Use the bordered Hessian to test the second-order condition.

Q2. Given the total cost function: C = x2 + 2xy + 2y2 for a firm producing goods x and y. The firm must meet a production quota of 2x + 3y = 40. (80 pts) 2.1) Minimize cost for this firm. 2.2) Use the bordered Hessian to test the second-order condition.

Q3. A consumer wants to maximize utility u (x,y) subject to the constraint PxX +PyY = B where x and y are amounts of two commodities that this consumer consume. Suppose this consumer’s income is B, price of good x is Px and the price of good y is Py. Assume that the secondorder sufficient condition is met so lHl = lJl ? 0. Find dx/dPx (80 pts)

Related Discussions:- ....

Cost theory, What are the economies and diseconomics of scale?

What are the economies and diseconomics of scale?

Baumol tobins inventory model, Under specified assumptions, derive the squa...

Under specified assumptions, derive the square-root formula of the Baumol-Tobin's inventory model of transactions demand for money and briefly describe the effect of a one period i

Periodic table, which three group of the periodic table contain the most el...

which three group of the periodic table contain the most elements classified as metalloids (semimetals)?

What do you meant by fiscal policy, Question 1: (a) Describe what is Ec...

Question 1: (a) Describe what is Economic growth and describe its relationship with standard of living? (b) Assuming you are the government economist, what policy measures

International economics., GIVE AND EXPLAIN IN DETAIL,ARGUMENTS GIVEN TO EXP...

GIVE AND EXPLAIN IN DETAIL,ARGUMENTS GIVEN TO EXPLAIN LEONTIEF''S EMPERICAL FINDINGS ON THE HECKSCHER-OHLIN MODEL OF TRADE.

Opertunity cost, how do you calculate opportunity cost

how do you calculate opportunity cost

Efficiency of a competitive market, The Efficiency of a Competitive Market ...

The Efficiency of a Competitive Market *? When an competitive markets generate an inefficient allocation of the resources or market failure?   1) Externalities Costs

Steps of the basic analytical framework in modern economics, What are the s...

What are the steps of the basic analytical framework in Modern Economics? Framework is very significant to master this fundamental analytical framework, particularly, these fiv

Production function curve, different types of production funtion and curve ...

different types of production funtion and curve given by different economist

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd